Unlocking Growth: The Benefits of Offering Kubernetes-as-a-Service on VMware Cloud Foundation

In today’s highly competitive cloud market, success depends on adopting cutting-edge technologies that enhance efficiency and drive business growth. A recent IDC study highlights the advantages for VMware Cloud Service Providers (VCSPs) that offer Kubernetes-as-a-Service (KaaS) on VMware Cloud Foundation (VCF). Below, we explore key findings from the study and their significance for cloud providers.

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Key Insights from IDC

1. Revenue Growth for KaaS Providers

– 4.4% Higher Revenue Growth – VCSPs offering KaaS experience nearly 75% higher revenue growth over five years compared to those that do not.
– 9.5% of Total Revenue from KaaS – Kubernetes services contribute nearly 10% to overall organizational revenue.
– 31.9% Compound Annual Growth Rate (CAGR) – Providers embracing KaaS see significant long-term revenue expansion.

2. Operational Efficiency & Customer Engagement

– 38% More Efficient Infrastructure & Monitoring Teams – Improved internal operations lead to cost savings and better service delivery.
– 10% Increase in Self-Service Adoption – Customers benefit from greater autonomy, reducing support demands and enhancing user experience.

3. Service Delivery & Customer Retention

– 15% More Services Delivered via Containerization – Aligning with modern application development trends boosts service relevance.
– 40% Increase in Customer Deal Size – Larger deals indicate stronger customer investment in scalable, high-performance cloud solutions.

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Why These Findings Matter for VMware Cloud Service Providers

– Stronger Competitive Position – Offering KaaS enables VCSPs to compete with hyperscale PaaS providers, helping retain customers who might otherwise migrate.
– New Revenue Opportunities – With a projected 74.4% revenue increase over five years, integrating KaaS is essential for long-term business stability.
– Operational Excellence – A 38% boost in infrastructure efficiency allows providers to focus on innovation rather than maintenance.
– Enhanced Customer Experience – A 10% rise in self-service adoption highlights the demand for user-friendly, autonomous cloud solutions.
– Scalability & Performance – Managing higher workloads without sacrificing quality ensures customer loyalty and long-term value.

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Real-World Success Stories

Partner Testimonials

– One provider doubled their deal size after scaling from 280,000 to 700,000 sessions per second using VMware Cloud Director Container Service Extension (CSE) with Tanzu KaaS.
– Another provider retained 20% of customers who would have moved to hyperscalers by offering container services alongside virtual machines on a unified platform.

These examples demonstrate how adopting Kubernetes-as-a-Service on VMware Cloud Foundation is not just an operational upgrade—it’s a strategic move for sustainable growth, differentiation, and customer retention.

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Next Steps

Learn More

Discover additional insights and industry experiences by reading the IDC white paper.

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